Microsoft shuts all 80 offline stores, goes permanently online
29 June, 2020
Microsoft said Friday it'll close all of its retailers and approach its retail operations online, keeping just four places and transforming them into “experience centers.”
The move means the more than 80 Microsoft stores closed because of the coronavirus pandemic won't reopen as the tech giant enters “a fresh method of retail,” according to a statement.
“Microsoft will continue steadily to spend money on its digital storefronts on Microsoft.com, and retailers in Xbox and Windows,” the statement said.
The four spots which will become Microsoft Encounter Centers are in London, New York, Sydney and at the company’s Redmond, Washington headquarters.
Retail team members will “serve customers from Microsoft corporate conveniences and remotely providing sales, training, and support,” the company said.
Microsoft said it'll reserve $450 million to go over the costs of closing the locations. The number of employees who would be affected had not been immediately available.
“Our sales have grown online as our merchandise portfolio possesses evolved to largely digital offerings, and our talented crew has tested success serving consumers beyond any physical location,” said Microsoft corporate vice president David Porter.
Microsoft recently has been relying extra on its services such as for example cloud computing, with the retail locations focusing on its Surface tablets and laptops as well as Xbox gaming gear. However the physical stores didn't gain the momentum of rival Apple.
Independent technology analyst Neil Cybart said the closures were because “the top business increasingly looks to be losing momentum on the buyer space.”
The impact of the pandemic has not yet been reflected in Microsoft’s financial results. It posted a net profit of $10.8 billion from January to March, up 22 percent year-on-year, on a turnover of $35 billion.
Despite production delays because of its Surface range, the group believes it really is very well positioned to weather the crisis, thanks specifically to the explosion of cloud computing.
In an era of social distancing, Microsoft may also depend on its teleworking, distance and education software and services.
However, it has only closed down video game streaming platform Mixer, leaving the discipline open to the industry huge Twitch, owned simply by Amazon, and its own two rivals, YouTube Gaming and Facebook Gaming.
Source:
TAG(s):